Meta’s metaverse wager is also a bet on founder control • TechCrunch
Meta’s other bet is making Alphabet’s long-running Other Bets segment appear cheap, both in cash and market cap terms.
Shares of Facebook’s parent company plummeted after the company reported huge costs and losses associated with its future-facing metaverse project, accompanied by a revenue decline that, while forex-impacted, was still far from the heady days when Meta only seemed to grow no matter the business climate. And the company is signaling that more spending is coming.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
Meta’s trailing results and future operational guidance pushed its shares down just under 23% in pre-market trading. That the company is not changing course even after shedding more than half of its value, measured from 2021 highs, amid public calls from investors for a course-correction is notable.
Today, I want to go over the company’s results as they relate to Reality Labs, or what is colloquially known as the Meta metaverse project, and what the company said in its earnings report. Meta, I believe, is behaving like a startup — wagering a large portion of its wealth on building what’s next. If you don’t agree with CEO Mark Zuckerberg’s vision for the future, I feel you.